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nick-pescrane-co
Level 1

How do I disable Unemployment Tax? I am the only employee of my LLC. I am not required to pay it as a Sole Proprietor.

 
7 Comments 7
JenoP
Moderator

How do I disable Unemployment Tax? I am the only employee of my LLC. I am not required to pay it as a Sole Proprietor.

Jumping in to help with your payroll-related question, nick-pescrane-co. 

 

I will also share with you the steps on how to exempt your self from unemployment taxes. Here's how: 

 

  1. Go to the Payroll or Workers menu, then select Employees.
  2. Click your name and proceed to the Employee Details or Pay section, then select Edit (pencil icon).
  3. Proceed to the Withholdings section and click the Edit (pencil icon) again.
  4. Scroll-down to the Tax exemptions section. Then, uncheck the unemployment tax. 
  5. Click Done.

 

Feel free to visit or save these articles in case you will be needing them when running payroll in QBO: 

 

 

You can ask follow-up questions or submit new ones if you need anything else. The Community is always ready to help you all the time.

JenoP
Moderator

How do I disable Unemployment Tax? I am the only employee of my LLC. I am not required to pay it as a Sole Proprietor.

Hi nick-pescrane-co,
 
Hope you’re doing great. I wanted to see how everything is going about exempting your self from unemployment taxes. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.
 
Looking forward to your reply. Have a pleasant day ahead!
 
 
Christi11
Level 2

How do I disable Unemployment Tax? I am the only employee of my LLC. I am not required to pay it as a Sole Proprietor.

atbrown
Level 1

How do I disable Unemployment Tax? I am the only employee of my LLC. I am not required to pay it as a Sole Proprietor.

Hello.  I'm having the same issue.  I can delete it from my employee tax withholdings but it still shows up in the employer taxes.  I am the only employee of my LLC (set up as an S-Corp).  It will not allow me to delete the state unemployment insurance from running during payroll.  This also applies to PFML and Workers Compensation.  I have confirmed that I am not required to pay any of these yet I can not delete them.  Please help.

MadelynC
Moderator

How do I disable Unemployment Tax? I am the only employee of my LLC. I am not required to pay it as a Sole Proprietor.

Thanks for joining this thread and alerting us of your situation, @atbrown. I’m here to help sort this out.

 

As long as you completely set the employee's State Unemployment Insurance (SUI), Paid Family and Medical Leave (PFML) to "Exempt" and deleted the worker compensation setup, QuickBooks won't generate taxes for them. They will not also be included in your employer taxes and when processing payroll.


Sometimes, platforms like QuickBooks Online may take so long to display updated information due to multiple changes, poor Internet connection, data corruption, or browser-related issues. To get around this, I suggest refreshing the page or performing some troubleshooting steps. This helps trigger the system to reflect the changes you’ve made.


First, open your QuickBooks account in a private or incognito window for testing. You can use the shortcut keys below for quick navigation:

 

  • Google Chrome: Ctrl + Shift + N
  • Safari 11 or newer: + Shift + N
  • Mozilla Firefox: Ctrl + Shift + P
  • Microsoft Edge: Ctrl + Shift + P


After logging in, review your payroll setup. You can remove the SUI, PFML, and Workers compensation again if they're still selected or added. Then, check your employer's taxes and try to create a payroll. If they no longer show up, get back to your regular browser and clear its cache. Doing this helps the program to run smoothly. You can also use other supported browsers as an alternative.


If the issue persists, I recommend contacting our Payroll Support team to investigate it further. Our representatives have enough tools to correct this and ensure you can't pay these taxes.


I’m adding this reference that provides useful information on how to keep your payroll and finances organized and compliant: 10 expert tips on how to stay payroll compliant.


If you have additional questions or concerns about managing your payroll and taxes, never hesitate to drop a comment below I’ll be here anytime. Take care always!

mcmaltby
Level 1

How do I disable Unemployment Tax? I am the only employee of my LLC. I am not required to pay it as a Sole Proprietor.

My problem was that I could NOT finish setting up payroll until I had an ESD# from the state of Washington. Since I was NEVER going to get an ESD# it was preventing me from running payroll.  So, I input a fake number and bypassed the system.  Then I was able to select "exempt" for ESD and FLMA.

 

However, I just noticed that the employer taxes included a payment for FMLA.  How do I get this money returned to my client.

 

FateCandylaneT
QuickBooks Team

How do I disable Unemployment Tax? I am the only employee of my LLC. I am not required to pay it as a Sole Proprietor.

We're glad to see you on this thread, Mcmaltby. I'll provide information to ensure you'll acquire the right support so your client will receive their refunds.

 

When setting up payroll and noticing any unusual behavior, I'd suggest contacting our Customer Care Team to help you correct your taxes and get things back in its place. They can pull up your account and provide steps to address your concern.

 

Also, to help your customer get their refunds, I'd recommend contacting your state agency to proceed with the entire process. They are eligible to provide this to your client.

 

Please check out support hours to ensure that we can address your concerns on time.

 

Moreover, I'm adding this link to guide you with your other QuickBooks concerns that you'll work on in the future: Help articles for QuickBooks Online Payroll

 

We'd be glad to hear more from you, Mcmaltby. Keep us posted if you have additional questions about your payroll and taxes. Have a good one!

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